ONGC Q1 profits up by 14% on higher refining margin

State explorer Oil and Natural Gas Corp reported a 14% jump in quarterly net profit, as it significantly cut discounts on crude oil to refiners after global oil prices fell.

State explorer Oil and Natural Gas Corp reported a 14% jump in quarterly net profit, as it significantly cut discounts on crude oil to refiners after global oil prices fell.

Net income for the company's fiscal first quarter ended June 30 rose to 54.59 billion rupees ($839.59 million) from 47.82 billion rupees a year earlier.

Upstream state companies such as ONGC and Oil India typically sell crude oil at discounted rates to partly compensate retailers for losses they incur on selling fuels such as gasoline and cooking gas (LPG) at government-set rates.

The impact of the discounts on profit after tax was 6.28 billion rupees during the quarter, compared with 73.96 billion rupees in the year-ago quarter.

Net sales for the quarter rose 4.4% to 226.96 billion rupees.